Home Sectors Healthcare Stock Under Review: Varian Medical Systems (NYSE: VAR)

Stock Under Review: Varian Medical Systems (NYSE: VAR)

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Varian Medical Systems trades as part of the healthcare sector and is in the medical instruments and equipment industry. Varian Medical Systems Inc is engaged in the healthcare sector. It manufactures medical devices for conditions with radiotherapy, radiosurgery, proton therapy and brachytherapy.

Previous Intraday Trading Performance:

The VAR stock showed a previous change of -0.75% with an open at 136.85 and a close of 135.57. It reached an intraday high of 136.85 and a low of 133.99.

PR Newswire:  Varian Announces Second Quarter Fiscal Year 2019 Earnings Release Date and Upcoming Investor Event

Liquidity:

The stock has a market cap of $12.3b with 90.8m shares outstanding, of which the float is 90.4m shares. Trading volume reached 705,734 shares compared to its average volume of 569,696 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Varian Medical Systems shares returned -0.03% and in the past 30 trading days it returned 2.19%. Over three months, it changed 19.00%. In one year it has changed 9.45% and within that year its 52-week high was 137.67 and its 52-week low was 101.42. VAR stock is 33.67% above its 52 Week Low.

Our calculations show a 200 day moving average of 118.72 and a 50 day moving average of 130.81. Currently VAR stock is trading 14.19% above its 200 day moving average.

PR Newswire:  Varian and Tata Trusts Sign Framework Agreement for Advanced Cancer Care Solutions to Address Growing Need in India

Earnings:

The last annual fiscal EPS for the company was reported at 1.62 that ended on 30th of September 2018, which according to the previous close, that is a PE of 83.69. Based on 4 analyst estimates, the consensus EPS for the next quarter is 1.19. The TTM EPS is 4.41, which comes to a TTM PE of 30.74. Historically, the PE high was 83.69 and the PE low was 15.70. If the stock reached its PE low, that would represent a price of 69.24, which is a decrease of -48.93%.

The following are the last four quarter reported earnings per share:
12-31-2018:  1.06
09-30-2018:  1.16
06-30-2018:  1.04
03-31-2018:  1.15

Base on our calculations, the intrinsic value per share is 105.05, which means it may be overvalued by -29.06%

Indicators to Watch:

Based on the latest filings, there is 0.50% of insider ownership and 136.30% of institutional ownership. Short-interest is 2,061,183, which is 2.27% of shares outstanding. The short-interest ratio or days-to-cover ratio is 3.83. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 0.85

PR Newswire:  Varian and Tata Trusts Sign Framework Agreement for Advanced Cancer Care Solutions to Address Growing Need in India

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 23.85%, return on assets is 10.96%, profit margin is 12.29%, price-to-sales is 4.16 and price-to-book is 7.39.

Company Scores:

All scores are out of six:
 1  :Valuation Score
 4  :Past Performance Score
 6  :Financial Strength Score
 1  :Future Growth Score
 0  :Dividend Score
 3  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.